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5 Biggest Banks Gain another Victory in Control of $700 Trillion Derivatives Market


Federal regulators have softened a new regulation intended to make the derivatives market—which helped cause the financial crisis—more competitive among banks. A derivative is a contract whose value is based on other underlying assets, such as stocks, bonds, commodities, currencies, interest rates and market indexes.

 

Currently, just five banks control 90% of all derivatives contracts: JPMorgan Chase, Citigroup, Bank of America, Morgan Stanley and Goldman Sachs. The Commodity Futures Trading Commission (CFTC) had planned to require firms wanting a price for a derivatives contract to contact at least five banks.

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http://www.allgov.com/news/where-is-the-money-going/5-biggest-banks-gain-another-victory-in-control-of-700-trillion-dollar-derivatives-market?

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